Correlation Between JBG SMITH and Regions Financial
Can any of the company-specific risk be diversified away by investing in both JBG SMITH and Regions Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JBG SMITH and Regions Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBG SMITH Properties and Regions Financial, you can compare the effects of market volatilities on JBG SMITH and Regions Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JBG SMITH with a short position of Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Regions Financial.
Diversification Opportunities for JBG SMITH and Regions Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between JBG and Regions is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial and JBG SMITH is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JBG SMITH Properties are associated (or correlated) with Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of JBG SMITH i.e., JBG SMITH and Regions Financial go up and down completely randomly.
Pair Corralation between JBG SMITH and Regions Financial
Given the investment horizon of 90 days JBG SMITH Properties is expected to under-perform the Regions Financial. In addition to that, JBG SMITH is 2.39 times more volatile than Regions Financial. It trades about -0.12 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.03 per unit of volatility. If you would invest 1,948 in Regions Financial on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Regions Financial or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Regions Financial
Performance |
| Timeline |
| JBG SMITH Properties |
| Regions Financial |
JBG SMITH and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Regions Financial
The main advantage of trading using opposite JBG SMITH and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH position performs unexpectedly, Regions Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Regions Financial will offset losses from the drop in Regions Financial's long position.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| Regions Financial vs. JBG SMITH Properties | Regions Financial vs. Where Food Comes | Regions Financial vs. Merit Medical Systems | Regions Financial vs. HNI Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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